How to Choose Your Savings Account

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Savings is an important matter, and you just can’t compromise on it. When you want to save up for a rainy day, you need to pick the right hands to place your money in. And choice needs to be one which benefits you the most. The first thing you need to know about savings accounts is that they are of two kinds. The first is the passbook savings account. This is your regular savings account – where you can keep track of your deposits and withdrawals and interest added with the help of the passbook. But you can also keep your money in a high yielding savings account. The interest rates for this account are higher, but there are other restrictions. For one, you might not be able to give out cheques from this account, making transacting rather difficult. Another thing that you need to consider is how much the minimum balance is for the account and choose accordingly.

Each bank has its own minimum balance requirements. So you need to scout about and find the bank which has the lowest minimum balance. While you’re doing this, you can check out the interest rates that are offered for the savings accounts too. So, on the one hand you’re looking for minimum balance and on the other you’re looking out for maximum interest. Also look at the restrictions placed on transactions – is there a limit to how many cheques you can give out? How easily can you acquire cash for an emergency? If you can’t get emergency cash, then you might as well pass on the bank. But while these are some basics, also look at what services the banks have to offer. One such service is online or net banking and mobile banking. You can make transactions through the internet or your mobile for free. There are banks that allow you to transact for free online but might charge you for stop payment of cheques.

Also look at debit and ATM cards and what services or discounts they offer with them. Debit cards are helpful for getting cash despite the bank being closed. But some banks charge an annual fee for the card, so keep an eye on that. Also look at miscellaneous charges like those for a lost passbook or another cheque book. These are some small things that can help you to save money in the long run. Remember, the whole point is that you’re trying to save money – paying for small things can still make a dent in your purse in the long run. For opening a savings account in India, all of these points ensure that you get the services that you want

KVB offers regular savings account and mutual fund investments for their valuable customers.

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